The Maldives Monetary Authority's (MMA) 'Favara' instant payment system for transfers between banks was launched on Saturday night.
Vice President Faisal Naseem inaugurated the instant payment system at a launching ceremony held at Crossroads. Senior MMA and bank officials attended the ceremony.
According to the MMA, 'Favara' is the biggest recent change to the country's payment structure, assuring security, convenience and innovative changes to the financial system.
The system enables:
- Instant payments
- Request to pay
- Smart addressing
- Account verification
The system was first used by the Bank of Maldives (BML), Maldives Islamic Bank (MIB) and the State Bank of India (SBI).
Efforts are ongoing to integrate other banks into the system by the end of the year.
Explaining how work on the instant payment system started, MMA Assistant Governor Mariyam Hussain Didi noted the dependence on cash and checks due to the under-developed digital banking system in the country despite high internet and smartphone usage.
The system for payment through digital means was introduced after consultation and research. It was designed to suit the Maldives and ensure uninterrupted banking services throughout the year, she added.
Following the completion of the first phase of the project, the MMA said further services would be available upon the launch of the second phase in the near future.
